FM: Demonetisation squeezed terror funding

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Replying to a discussion on Supplementary Demands for Grants in Lok Sabha, Finance Minister Arun Jaitley said that demonetisation has led to squeezing of terror funds, including in Jammu and Kashmir even as India continues to be the world's fastest growing major economy.

Terror funding has been squeezed due to demonetisation, Finance Minister Arun Jaitley said on Tuesday, adding that the number of stone throwers in Jammu and Kashmir has gone down in last few months as a result of it.

"In last few months, security forces have had an upper hand. In 2008 to 2010 we saw thousands of stone pelters on streets. In last few months, there have not been more than 25-50 or 100 stone pelters on the streets. There is one reason, terror funding has been squeezed," said Jaitley, while replying to a debate on supplementary demand for grants in the Lok Sabha.

He said as a result of demonetisation, terrorists were forced to rob banks for money, and Uttar Pradesh resident Sandeep Sharma, who was arrested for being a member of an LeT module in south Kashmir, was a welder and thus used to break open bank lockers.

Jaitley also said that government is taking all steps to ensure sustainability of national carrier Air India. The finance minister said in Lok Sabha that Air India has incurred huge losses over the years and its debt burden has made it unviable in a competitive market.

The government has also said that GST has made a smooth start across the nation and there has been no major instances of disruption anywhere. Jaitley said that government has received suggestions from various stake holders on the new tax regime and many of them have become part of GST after careful deliberation by the GST council.

GST is expected to broaden the tax base also which will help growth of revenue. He said that input credit scheme of GST has helped bring down overall taxes on many commodities from older taxation system.